Prairie Provident Resources (PPR) AI Stock Analysis

• Market Cap: C$21.02M
• Dividend Yield: N/A
• Average Volume (3M): 154.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.10
• Revenue Growth: -5.45%
• EPS Growth: -4.42%
• Country: CA
• Employees: 20
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.15
• Shares Outstanding: 46,719,150
• 10 Day Avg. Volume: 111,336
• 30 Day Avg. Volume: 154,596
• PEG Ratio: <0.01
• Price to Book (P/B): -0.03
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -0.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: C$0.43 ▼(-58.04% Downside)

The score is driven primarily by weak financial performance (sharp revenue decline, sustained losses, negative equity and leverage risk) and bearish technicals (price below key moving averages with negative MACD). Valuation is also constrained by negative earnings (negative P/E) and no dividend yield data to offset risk.

Positive Factors

Operating Cash Flow

Positive operating cash flow indicates the asset base can generate cash from ongoing operations, providing a near-term runway to fund working capital and selective maintenance capex. Durable cash generation reduces immediate liquidity pressure versus no cash inflows.

Focused E&P Business Model

A concentrated E&P focus in Western Canada combined with advanced drilling techniques supports repeatable operational improvements and recovery rates. Specialization in a regional resource base can drive steady production optimization and lower unit costs over multiple quarters.

Contracted Sales & Partnerships

Having direct offtake arrangements and processing/transport contracts plus local operator partnerships secures market access and operational support. These structural relationships reduce execution and commercial risk versus purely spot sales, improving long-term revenue stability.

Negative Factors

Sharp Revenue Contraction

A near-60% revenue decline materially reduces scale economics and magnifies fixed-cost absorption, eroding margins and cash flow resilience. Restoring pre-decline production or prices can take multiple quarters, limiting reinvestment capacity and strategic flexibility.

Negative Equity and High Leverage

Negative equity and elevated leverage signal structural solvency risk and constrain access to traditional financing. This weak balance-sheet position raises refinancing and covenant risk, making the company more vulnerable to prolonged commodity downturns and capital-market stress.

Sustained Losses and Negative Free Cash Flow

Deep negative margins and negative free cash flow indicate operations do not produce surplus cash to fund growth or pay down debt. Over multiple quarters this necessitates external financing or asset sales, increasing dilution or leverage and impairing long-term investment in the asset base.

Prairie Provident Resources Business Overview & Revenue Model

Company Description

Prairie Provident Resources Inc. engages in the exploration, development, and production of oil and natural gas properties in Alberta. It principally focuses on the Princess, Michichi, and Provost areas. The company is headquartered in Calgary, Canada.

How the Company Makes Money

Prairie Provident Resources generates revenue primarily through the sale of crude oil and natural gas extracted from its operational fields. The company employs a revenue model that includes direct sales to refineries and natural gas processing plants, as well as entering into contracts with third parties for transportation and processing services. Key revenue streams consist of production from its owned assets, enhanced by strategic partnerships with local operators and service providers that assist in optimizing production efficiency. Additionally, market conditions, such as oil and gas prices, significantly influence PPR's earnings, making them responsive to fluctuations in commodity markets.

Prairie Provident Resources Financial Statement Overview

Summary

Financials are weak: revenue declined sharply (-57.9% TTM), profitability is deeply negative (net margin -41.6% with negative EBIT/EBITDA margins), and the balance sheet shows negative equity with high leverage risk. Operating cash flow is positive ($4.3M) but free cash flow is negative, limiting financial flexibility.

Income Statement

Prairie Provident Resources has faced significant challenges in its income statement. The TTM data shows a steep decline in revenue with a negative growth rate of -57.9%, indicating a severe contraction in sales. Gross profit margin is low at 10.8%, and the net profit margin is deeply negative at -41.6%, reflecting substantial losses. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies. The company needs to address these issues to improve profitability.

Balance Sheet

The balance sheet reveals a precarious financial position with a negative stockholders' equity, resulting in a negative debt-to-equity ratio of -1.22. This indicates that the company is highly leveraged, which poses a risk in terms of financial stability. Return on equity is positive at 39.7%, but this is due to the negative equity base. The equity ratio is negative, suggesting that liabilities exceed assets, which is concerning for long-term solvency.

Cash Flow

Cash flow analysis shows some positive aspects, such as a positive operating cash flow of $4.3 million. However, free cash flow is negative, and the free cash flow to net income ratio is -2.67, indicating that the company is not generating sufficient cash to cover its losses. The operating cash flow to net income ratio is low at 0.06, suggesting limited cash generation relative to net losses. The company must improve cash flow management to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.13M	43.25M	67.93M	120.60M	74.82M	51.72M
Gross Profit	3.73M	477.00K	4.03M	30.93M	10.89M	-20.64M
EBITDA	-3.81M	7.66M	14.55M	28.28M	44.61M	-43.23M
Net Income	-30.54M	-16.96M	-20.12M	-2.40M	10.42M	-90.77M
Balance Sheet
Total Assets	113.60M	117.87M	167.33M	223.13M	232.96M	220.32M
Cash, Cash Equivalents and Short-Term Investments	1.27M	4.72M	1.83M	6.57M	1.85M	4.54M
Total Debt	66.66M	58.15M	77.77M	127.00M	112.21M	108.22M
Total Liabilities	172.20M	166.91M	210.22M	292.24M	299.52M	297.23M
Stockholders Equity	-58.60M	-49.04M	-42.89M	-69.11M	-66.56M	-76.91M
Cash Flow
Free Cash Flow	-15.94M	-10.74M	-11.37M	5.48M	-4.63M	6.42M
Operating Cash Flow	4.29M	18.00K	-10.65M	24.48M	9.68M	10.18M
Investing Cash Flow	-20.98M	13.54M	-562.00K	-20.48M	-11.49M	-4.98M
Financing Cash Flow	8.94M	-10.67M	6.58M	520.00K	-885.00K	-4.11M

Prairie Provident Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PPR, the sentiment is Negative. The current price of 1.02 is above the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.67, and above the 200-day MA of 0.81, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.66 is Neutral, neither overbought nor oversold. The STOCH value of 53.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PPR.

Prairie Provident Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SOU	50 Neutral	C$25.43M	-1.18	-44.92%	―	3.01%	84.56%
WIL	48 Neutral	C$30.09M	-10.18	-276.15%	―	-3.67%	-26.40%
TAO	47 Neutral	C$26.04M	-5.90	-10.11%	―	257.86%	57.88%
DME	42 Neutral	C$24.97M	-10.40	-6.13%	―	-82.16%	70.07%
PPR	40 Underperform	C$21.02M	-0.64	―	―	-5.45%	-4.42%
JEV	38 Underperform	C$27.36M	-2.45	-72.40%	―	-100.00%	3.67%

Prairie Provident Resources Corporate Events

Prairie Provident Boosts Princess Output but Faces Setbacks at Michichi Wells

Prairie Provident Resources reported a successful Ellerslie multi-leg horizontal well at its Princess core area, where initial output has climbed to about 290 boe/d as cleanup continues, alongside the commissioning of a new water disposal facility expected to cut area operating costs by roughly $600,000 annually through eliminating produced water trucking and third-party disposal. However, two new Basal Quartz horizontal wells drilled from a pad at Michichi suffered casing failures likely linked to geo-mechanical issues associated with sub-seismic faults, leaving the wells likely unsalvageable and prompting the company to reassess its drilling design and future development plans in the Michichi area.

The most recent analyst rating on (TSE:PPR) stock is a Hold with a C$0.02 price target. To see the full list of analyst forecasts on Prairie Provident Resources stock, see the TSE:PPR Stock Forecast page.

Prairie Provident to Consolidate Shares 30-for-1, Slashing Outstanding Count

Prairie Provident Resources will implement a 30-for-1 consolidation of its common shares, effective December 31, 2025, reducing the number of outstanding shares from about 1.4 billion to roughly 46.7 million. The post-consolidation shares will continue trading on the TSX under the symbol PPR with new CUSIP and ISIN identifiers, and all related equity-linked instruments—warrants, options and share units—will be adjusted proportionately; while the move simplifies the capital structure and may support marketability of the stock, it will eliminate holdings of fewer than 30 pre-consolidation shares as fractional interests are rounded down and cancelled.

The most recent analyst rating on (TSE:PPR) stock is a Hold with a C$0.02 price target. To see the full list of analyst forecasts on Prairie Provident Resources stock, see the TSE:PPR Stock Forecast page.

Prairie Provident Sees Production Rise Amid Financial Adjustments in Q3 2025

Prairie Provident Resources reported a 6% increase in production for Q3 2025 compared to the previous year, driven by enhanced Basal Quartz production. However, the company faced a net loss of $6.9 million, attributed to higher operating expenses and lower pricing, despite a $10.9 million gain on debt modification in the previous year. In a strategic move, the company completed a preferred share financing of $26.5 million and amended its debt agreements to extend maturities, which is expected to improve financial flexibility. Additionally, the company initiated the drilling of a new well in its Princess area and started constructing a water disposal facility to reduce operating costs and maximize production.

Prairie Provident Secures C$26.5 Million in Equity Financing and Amends Debt Terms

Prairie Provident Resources Inc. has successfully completed a preferred share financing, raising C$26.5 million, and amended its debt agreements to extend maturities by 24 months and defer cash interest obligations through 2026. These financial maneuvers aim to strengthen the company’s capital structure and provide greater financial flexibility, potentially enhancing its operational stability and market positioning.